China’s National Development and Reform Commission (NDRC), the country’s state planning agency, announced that it is looking for private investors and companies to fund, build, and service over 1,000 infrastructure projects. The statement did not mention whether or not foreign businesses will be allowed to invest.
The projects will mostly be concentrated in the utilities, waste management, and transportation sectors with a total value of 1.97 trillion yuan (US$317.50 billion). Their locations are all throughout the country, but mostly in Eastern and Southeastern China including Beijing and Zhejiang provinces.
Noteworthy projects include two subway lines in Hangzhou worth 51.9 billion yuan (US$8.36 billion), and a large hospital in Urumqi worth 6.4 billion yuan (US$1 billion).
China’s economic growth is slowing somewhat, down to a 7.4% in 2014 expansion from 7.7% in 2013, and this number is expected to shrink further into the 6% range in the coming years.
Debt has also grown in recent years, and is now estimated at US$3 billion, leading to budget tightening and restrictions on loans and mortgages by financial institutions.
Because of these reasons, Beijing is turning toward public-private partnerships (PPP) to finance much of the country’s future development.
“The publication of this library of PPP projects is to help speed up the adoption of the PPP model, and to encourage and guide social capital into the provinces, autonomous regions and municipalities,” explained the NDRC.